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Last week, Island Pharmaceuticals Limited (ASX:ILA) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 13% last week, resulting in a AU$3.1m increase in the company's market worth, implying a 180% gain on their initial purchase. As a result, the stock they originally bought for AU$964.1k is now worth AU$2.70m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Island Pharmaceuticals
The Last 12 Months Of Insider Transactions At Island Pharmaceuticals
The insider Jason Carroll made the biggest insider purchase in the last 12 months. That single transaction was for AU$459k worth of shares at a price of AU$0.061 each. Even though the purchase was made at a significantly lower price than the recent price (AU$0.18), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 15.01m shares for AU$964k. But insiders sold 2.68m shares worth AU$191k. Overall, Island Pharmaceuticals insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Island Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Island Pharmaceuticals Insiders Bought Stock Recently
At Island Pharmaceuticals,over the last quarter, we have observed quite a lot more insider buying than insider selling. In fact, two insiders bought AU$462k worth of shares. But we did see insider Jason Carroll sell shares worth AU$46k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership Of Island Pharmaceuticals
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Island Pharmaceuticals insiders own 53% of the company, worth about AU$15m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.